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Advanced Income Tax Law
Chapter 21
Electronic Lodgments
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About the ELS
The electronic lodgment service (ELS) is an electronic
data exchange system that allows tax practitioners to
transmit data to the ATO, and receive reports and
electronic forms from the ATO.
The ELS allows participating agents to lodge their
clients' tax returns and other tax forms with the ATO
electronically.
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About the ELS
Advantages of ELS
• immediate acknowledgment by the ATO of receipt of returns
and notification of those not received.
• 24 hour/365 days a year access to the ATO.
• faster turnaround - 95% of original individual assessments
will be processed within 14 days.
• access to a range of electronic reports from ATO business
systems.
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About the ELS
Advantages of ELS
• electronic lodgment of Business Activity Statements
(BAS), Instalment Activity Statements (IAS) and
Australian Business Number (ABN) applications.
• reduction in paper usage.
• accuracy - through edit checks within the tax
software.
• choice of software providers.
• Privacy.
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ELS User types
Transmitter
A transmitter prepares client tax returns and then
transmits them using the ELS registration number.
A transmitter can also transmit returns on behalf of
preparer tax agents.
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ELS User types
Preparer
A preparer prepares client returns which are then
lodged by a transmitter tax agent who will use their
own ELS password and ELS approval number.
A preparer does not have an ELS password.
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ELS Transmission
There are currently two transmission options available
to tax agents.
 Dial IP - is a private network provided by Telstra
This network has no connection to the internet and is
only used for ELS access.
 Internet - allows the tax agent to connect to ELS via
their internet service provider (ISP).
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ELS Software
The ELS allows participating agents to lodge their
clients' tax returns and other tax forms with the ATO
electronically, via modem.
The ATO provides a list of commercially available
software for use by tax agents, all of which have
undergone self-testing for the transmission of data.
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Electronic Lodgment
A taxpayer must provide the tax agent with a written
declaration before the agent transmits the return.
This declaration serves two purposes:
 it authorises the tax agent to lodge the taxpayer's
return electronically, and
 records the taxpayer's agreement with the
information intended for transmission to the ATO.
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Electronic Lodgment
Lodgment limitations
Although all income tax return types can now be
lodged electronically, there are some returns that may
not necessarily be processed within 14 days.
These are:
• deceased estates.
• outstanding tax or child support debt cases.
• cases where previous year returns are outstanding
or unissued.
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Electronic Lodgment
Lodgment limitations
• complex schedule leases.
• excepted net income/capital gains cases.
• exempt foreign salary and wages income cases,
Returns with invalid or missing tax file numbers cannot
be lodged electronically.
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Electronic Lodgment
Tax agent responsibilities
When a tax agent is lodging an income tax return electronically
on behalf of a client they must:
• get the completed declaration from the client authorising
them to lodge electronically, before transmitting the tax
return (Part A of the declaration).
• provide their agent's certificate electronically to the ATO
where they are using their own facilities to transmit the
return or amendment application.
• give the client a copy, or the original, of the Notice of
Assessment where the client's address for service of notice is
the tax agent’s address.
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